We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Can I get Insurance For My 6 month ADVANCE RENT PAYMENT
Options
Comments
-
If this is a deposit, the deposit has to be held in a protected scheme doesn't it? Is that not protection enough? So you're putting down a £6000 deposit, then paying £1000 per month rent?0
-
Why do you believe it is "safer" to use an LA? Anyone - absolutely anyone- can set themselves up in business as an LA, dealing with thousands of ££'s worth of other folks money and property. No formal training, qualification, expertise or indeed commom sense is required before opening up your LA shop/office.
You can find private LLs who self-manage their properties by going via the local or national LL associations. Some Councils run schemes to accredit PRS LLs so it may be worth asking whether they hold a list.
I have not heard of any insurance policies of the type you suggest - as G_M says, ask a broker for guidance. It may be worth you emailing the National LL Association too.
Your thread header is misleading btw - "Can I get Insurance For My 6 month deposit" - it would not be a "deposit" ( which would need to be scheme registered if property is in Eng/Wales) but an "advance rent payment"
Thanks
I should have stated that I will only use a LA which appears on ARLA's list of members. Surely a member can be trusted?
Thanks regarding the Nat. LL Assoc. I will investigate that avenue. Are you saying that a LL being a member can be trusted or at least give me sercurity to know my down payment is safe? How can I find such a LL in my location who's name address appears with them?0 -
jjlandlord wrote: »You seem to be looking for an insurance to protect you against your landlord basically going bust: Whether they have permission from lender or not should not impact the rent you paid in advance, what would is their capacity to pay it back to you in case the property is unexpectedly repossessed.
Thanks. Yes, I wanted an insurance to cover for me in the event that the LL does not have capacity to pay back if the property is unexpectedly repossessed. If no such insurance exists, then what would happen to my money?0 -
Thanks
I should have stated that I will only use a LA which appears on ARLA's list of members. Surely a member can be trusted?
Thanks regarding the Nat. LL Assoc. I will investigate that avenue. Are you saying that a LL being a member can be trusted or at least give me sercurity to know my down payment is safe? How can I find such a LL in my location who's name address appears with them?
Your security will derive from whether or not the lender could or would repossess the property from under your feet. The solution you are proposing is insurance and basically whether the LL and LA are sufficiently decent chaps to be admitted to their respective associations. Now even a chocolate teapot will look like a teapot and hold water - it only stops being quite so good when the heat is on.
I would suggest that you start with an ARLA agent, because these agents are more likely to check out the LL's right to let, but you insist on either seeing BTL permission or proof that the LL owns the property outright, as obviously, such LL's are best for your needs, but by definition will not have BTL permission.
An alternative approach would be to pay the money to a stakeholder [eg the LL's solicitor] with an agreement to refund you if the property is repo'd.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Thanks
I should have stated that I will only use a LA which appears on ARLA's list of members. Surely a member can be trusted?..
Membership is conditional on the LA signing up to a code of conduct/practice, amongst other things. There are, of course, those to whom such codes mean little.
Here's an example of an LA ( member of NAEA) who failed to look after the funds of client LLs and their Ts. At least the NAEA's insurance cover meant that some creditors got their money.0 -
What does PRS stand for?.
Sorry - Private Rented Sectorsee https://forums.moneysavingexpert.com/discussion/2666553
0 -
Here's an example of an LA ( member of NAEA) who failed to look after the funds of client LLs and their Ts. At least the NAEA's insurance cover meant that some creditors got their money.
This does not matter to OP. This NAEA's insurance is to cover LA's clients, i.e. landlords, against the LA going bust.
OP basically wishes to be protected against the landlord going bust.0 -
jjlandlord wrote: »This does not matter to OP. This NAEA's insurance is to cover LA's clients, i.e. landlords, against the LA going bust.
OP basically wishes to be protected against the landlord going bust.
My post was replying to the OP's suggestion that membership of ARLA et al means that an LA/LL can be trusted. The case I quoted is an example of the fact that this is not always so, unfortunately.0 -
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244K Work, Benefits & Business
- 598.9K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards